SPS Commerce (NASDAQ:SPSC) & Black Diamond Group (OTCMKTS:BDIMF) Head to Head Analysis

SPS Commerce (NASDAQ:SPSC) and Black Diamond Group (OTCMKTS:BDIMF) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares SPS Commerce and Black Diamond Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$762.08 million	2.86	$93.34 million	$2.40	24.55
Black Diamond Group	$326.99 million	2.58	$24.93 million	$0.35	34.83

SPS Commerce has higher revenue and earnings than Black Diamond Group. SPS Commerce is trading at a lower price-to-earnings ratio than Black Diamond Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SPS Commerce and Black Diamond Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	1	7	2	1	2.27
Black Diamond Group	0	0	1	0	3.00

SPS Commerce presently has a consensus target price of $77.18, suggesting a potential upside of 30.99%. Given SPS Commerce’s higher possible upside, equities analysts clearly believe SPS Commerce is more favorable than Black Diamond Group.

Institutional and Insider Ownership

99.0% of SPS Commerce shares are held by institutional investors. 1.0% of SPS Commerce shares are held by insiders. Comparatively, 25.2% of Black Diamond Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

SPS Commerce has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Black Diamond Group has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares SPS Commerce and Black Diamond Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPS Commerce	11.92%	12.43%	10.37%
Black Diamond Group	6.53%	8.65%	3.71%

Summary

SPS Commerce beats Black Diamond Group on 11 of the 15 factors compared between the two stocks.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

About Black Diamond Group

Black Diamond Group Limited rents and sells modular space and workforce accommodation solutions. It operates through two segments, Modular Space Solutions and Workforce Solutions. The Modular Space Solutions segment provides modular space rentals to customers in the construction, real estate development, education, manufacturing, health care, financial, government, and defense industries in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, banking and health care facilities, high security modular buildings, custom manufactured modular facilities, blast resistant structures, SmartSpace interchangeable paneled units, and storage containers. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary rental items, products, and services. The Workforce Solutions segment provides workforce housing solutions, including rental of accommodations and surface equipment, and provision of turnkey lodging and travel management logistics services in Canada, the United States, and Australia. This segment also provides associated services, such as installation, transportation, dismantlement, and sale of used fleet assets. This segment primarily serves the resource, infrastructure, construction, disaster recovery, and education sectors. It also provides specialized field rentals to oil and gas industries. The company markets its rental assets, custom sales, and ancillary products and services through in-house sales personnel, its website, social media, web campaigns, and its digital marketplace. Black Diamond Group Limited was founded in 2003 and is headquartered in Calgary, Canada.